Made in China: Winning world recognition with quality

"Many so-called famous brands in China are getting fast, like rocket launches; the speed is down as fast as a meteor." Entrepreneurs who make quick money are unlikely to spend a hundred years doing a good job. Brands, why? Because they don’t know what China is like in a hundred years.” When it comes to Chinese manufacturing, which does not mean China’s creation, and does not equal China’s famous brand, Zhong Wei’s professor at the Financial Research Center of Beijing Normal University Say.

Compared with international brands, there are still big gaps in Chinese brands. The US Business Weekly publishes the top 100 global brand rankings every year, but unfortunately, none of the Chinese brands are on the list. Why can't China get rid of the embarrassing situation of "great powers"? What can Chinese companies do to make "the strongest voice in China" in the international market?

On June 30th, at the forum of "The 4th Nobel Prize Winner China Tour - Changshu Station" of Longliqi Special's 2013 Times Weekly, 2012 Nobel Laureate in Economics , American Economist and Harvard University Professor Irvine Ross, Long Zhiqi Chairman and President Xu Zhiwei, Longliqi Vice President Qiu Jinyun, Long Liqi Vice President Xu Xiaoping, State Council Special Allowance Expert Pu Yongjian, Beijing Normal University Financial Research Center Professor Zhong Wei, well-known marketing strategy expert Li Guangdou, Duo Yunxuan Group Chairman Zhang Xiaomin and others To start a dialogue on the theme of "internationalization of national brands."

It is difficult for enterprises to make quick efforts

"When we went abroad in the early years, we liked to bring some souvenirs back. It was very strange at the time; now, I want to find a product that is not made in China, not "Made In China", and I can hardly find it." Director of Duoyunxuan Group Chang Zhang Xiaomin said. But in fact, while the goods manufactured in China are spread all over the world, the profits of Chinese companies are not high. Taking Apple products as an example, according to Huatai United Securities' research report on Apple's profits, Apple can obtain 58.5% of profits for each iPhone, while China's labor costs only account for 1.8%; in the profit distribution of iPad tablets. Chinese companies account for only 2%.

“Buildings are always aging, becoming fragile, machines are always worn, people are always dead. Only brands will survive,” said Hector Laing, CEO of United Biscuit Group. This shows the importance of the brand to the survival and development of the company. Li Guangdou, a well-known marketing strategy expert, said that Chinese brands are in the "internal and external troubles" - on the one hand, China has jumped to become the world's second largest economy, but Chinese brands have not been recognized globally; on the other hand, Chinese consumers Do not be proud of the Chinese brand.

When it comes to Chinese manufacturing, which does not mean China's creation, and does not equal China's famous brand, Zhong Wei, a professor at the Financial Research Center of Beijing Normal University, said: "Many so-called famous brands in China are growing fast, like rocket launches; down The speed is just as fast as a meteor. The entrepreneurs who make quick money are unlikely to spend a hundred years making a good brand. Why? Because they don’t know what China is like in a hundred years. ”

Due to the relatively short development time of China's market economy, there are differences between Chinese culture and world culture, which restricts Chinese brands to global recognition. In addition, it is very difficult for Chinese companies accustomed to “making fast money” to make brands. Although some Chinese companies started to make brands after making money, in Zhong Wei's view, it is actually not a brand, but a marketing.

Elvin Rose, a Nobel laureate in economics in 2012 and a professor at the University of Harvard in the United States, believes that at present, most Chinese manufacturing companies are only manufacturers of equipment, only selling products to dealers, and other companies. Less than competitive. In the future, when Chinese manufacturing companies can produce quality and trustworthy products in the international market, Chinese brands will have a place in the world market. Of course, this process will not be short, and Chinese companies still need to work hard for a long time.

From labor-intensive to capital-intensive

How should Chinese national enterprises in the "internal and external troubles" develop? Li Guangdou believes that the first step is to let Chinese consumers identify with their national brand products. As for how Chinese companies go to the world, he believes that it is necessary to start from the top three aspects of design, values ​​and quality chain.

"If the top-level design does not change, Chinese entrepreneurs are all day-to-day." Li Guangdou said that Chinese politicians must do top-level design and change the system. For example, he said: "My alumni are very young, 40 years old. However, according to the laws of Chinese state-owned enterprises, he can work for up to 20 years. When he is 60, he must hand over his scepter. You think, he will Do you have the heart of a century-old store?” In addition to the top-level design, Chinese brands are also recognized by the values ​​of the world. If the values ​​are not recognized by the whole world, foreign consumers will not dare to buy Chinese brand products.

In addition, Chinese brands must strengthen their own quality chain. Taking "Made in Germany" as an example, Li Guangdou said that German-made products were once not recognized by other countries; now, "Made in Germany" is synonymous with "excellent", a German-made kitchen knife can sell more than 2,000 Block money. The importance of the quality chain is thus apparent.

"China is a big market. I have to go abroad on the basis of the Chinese market. This is something I need to consider." After a collision with several guests, Long Zhiqi, chairman and president Xu Zhiwei said that the future will really give up. Some low-yielding industries with low gross profit, and looking for a healthy growth industry with profit growth points. Only by establishing a century-old brand under such premise can it be a healthy brand.

When talking about how Chinese companies build their brand strength, Longliqi Vice President Qiu Jinyun is more concerned about how to shape the story of Chinese private brands. Qiu Jinyun said that he was responsible for brands such as Coach in the United States, and he highly recognized the soft power of these well-known brands. So, what kind of soft power should be given to Longliqi? He mentioned that when visiting the Longliqi factory, Professor Ross was curious as to why other operations were automated. The only step of adding a bottle to the bottle required manual operation. Xu Zhiwei’s answer is because the factory has not yet been completed. Once completed, the workload of 200 bottles can be achieved in just 1 minute with just two people. In Qiu Jinyun's view, the company has the world's advanced manufacturing equipment, and in fact it is already a soft power.

Elvin Rose said that in the past, some export industries, such as furniture, belonged to labor-intensive industries and required highly skilled workers. It took a long time to get the job done. With the increasing degree of automation, China is becoming more and more prosperous, and China's manufacturing industry will be transformed into a capital-intensive industry instead of a labor-intensive industry. Industries that used to rely on low-cost industries will shift to countries and regions with lower labor costs. For Chinese manufacturing, it is better to add value to the value of labor.

Matching accurate cooperation is more efficient

Elvin Rose succeeded in creating a branch of economics—market design, and he applied the research to experiments and redesigned many of the existing matching mechanisms, including the Kidney Donation Matching Network, New York City High School. Admission matching system, as well as hospitalization training distribution system for medical graduates. Sally Satel of the American Enterprise Institute said, "Rose's work on kidney matching has greatly promoted the development of modern organ transplantation." So, can the matching mechanism be a Chinese company? Learn to use?

Pu Yongjian, an expert on special allowances of the State Council, said that various local governments, the National Development and Reform Commission, etc. often organize enterprises to go abroad and cooperate with foreign companies. However, the problem is that when Chinese companies seek cooperation abroad, they are not very familiar with the situation of foreign companies. For Chinese companies, they only care about products, technology, local laws, cultural practices, trade unions, etc., but in addition to this information, there is still a lot of information that Chinese companies do not understand. In turn, foreign companies want to attract Chinese companies to invest and acquire. At this time, Mr. Elvin Ross's matching mechanism came in handy.

Pu Yongjian suggested that the relevant government departments in China can cooperate with foreign governments first. For example, which Chinese companies want to invest abroad, and which companies in which countries think of Chinese investment, both sides have come up with relevant information. According to the research of Mr. Elvin Ross, the first thing that a Chinese company wants to acquire, the second one wants to acquire what kind of company, and what kind of company wants to acquire again; the foreign companies also sort in this order. Finally, I used the matching method of Elvin Rose. The advantage of doing this is that it can improve the efficiency of cooperation between the two parties. Pu Yongjian hopes that Elvin Rose will do some research on this issue with Chinese companies in the future and promote his research results in China, which may have some practical effects.

Xu Xiaoping, vice president of Longliqi, said that companies must be internationalized and matched as Professor Irvine Ross said. Specifically, it is necessary to achieve accurate matching in the three aspects of talents, products and brands, including finding talents and products that can expand the international market. For a century-old enterprise, he is very confident, "continuous matching and continuous optimization in our own bodies, truly making a company a century-old enterprise or even longer."

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